ATCO LTD -CLASS I (ACO-X.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ACO-X - CA0467894006 - Common Stock
58.6 CAD
+0.54 (+0.93%)
Overall ACO-X gets a fundamental rating of 5 out of 10. We evaluated ACO-X against 19 industry peers in the Multi-Utilities industry. Both the profitability and the financial health of ACO-X get a neutral evaluation. Nothing too spectacular is happening here. ACO-X has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- ACO-X had positive earnings in the past year.
- In the past year ACO-X had a positive cash flow from operations.
- Each year in the past 5 years ACO-X has been profitable.
- Each year in the past 5 years ACO-X had a positive operating cash flow.
1.2 Ratios
- ACO-X has a Return On Assets (1.55%) which is comparable to the rest of the industry.
- ACO-X has a Return On Equity of 9.08%. This is amongst the best in the industry. ACO-X outperforms 89.47% of its industry peers.
- ACO-X has a worse Return On Invested Capital (3.73%) than 73.68% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ACO-X is in line with the industry average of 3.73%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.55% | ||
| ROE | 9.08% | ||
| ROIC | 3.73% |
ROA(3y)1.62%
ROA(5y)1.41%
ROE(3y)9.17%
ROE(5y)7.94%
ROIC(3y)3.92%
ROIC(5y)3.81%
1.3 Margins
- ACO-X has a Profit Margin (8.38%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of ACO-X has declined.
- ACO-X has a Operating Margin (24.56%) which is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of ACO-X has declined.
- The Gross Margin of ACO-X (74.90%) is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of ACO-X has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.56% | ||
| PM (TTM) | 8.38% | ||
| GM | 74.9% |
OM growth 3Y2.6%
OM growth 5Y-3.18%
PM growth 3Y14.9%
PM growth 5Y-4.41%
GM growth 3Y-0.25%
GM growth 5Y-1.16%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ACO-X is destroying value.
- The number of shares outstanding for ACO-X remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, ACO-X has less shares outstanding
- The debt/assets ratio for ACO-X is higher compared to a year ago.
2.2 Solvency
- ACO-X has an Altman-Z score of 0.78. This is a bad value and indicates that ACO-X is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.78, ACO-X belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
- ACO-X has a debt to FCF ratio of 27.90. This is a negative value and a sign of low solvency as ACO-X would need 27.90 years to pay back of all of its debts.
- The Debt to FCF ratio of ACO-X (27.90) is better than 100.00% of its industry peers.
- A Debt/Equity ratio of 2.64 is on the high side and indicates that ACO-X has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 2.64, ACO-X is doing worse than 73.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.64 | ||
| Debt/FCF | 27.9 | ||
| Altman-Z | 0.78 |
ROIC/WACC0.72
WACC5.2%
2.3 Liquidity
- ACO-X has a Current Ratio of 1.81. This is a normal value and indicates that ACO-X is financially healthy and should not expect problems in meeting its short term obligations.
- ACO-X has a Current ratio of 1.81. This is amongst the best in the industry. ACO-X outperforms 100.00% of its industry peers.
- ACO-X has a Quick Ratio of 1.66. This is a normal value and indicates that ACO-X is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of ACO-X (1.66) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.66 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 10.19% over the past year.
- The Earnings Per Share has been growing slightly by 6.10% on average over the past years.
- The Revenue has been growing slightly by 7.75% in the past year.
- Measured over the past years, ACO-X shows a small growth in Revenue. The Revenue has been growing by 0.98% on average per year.
EPS 1Y (TTM)10.19%
EPS 3Y8.59%
EPS 5Y6.1%
EPS Q2Q%13.58%
Revenue 1Y (TTM)7.75%
Revenue growth 3Y4.84%
Revenue growth 5Y0.98%
Sales Q2Q%6.09%
3.2 Future
- Based on estimates for the next years, ACO-X will show a small growth in Earnings Per Share. The EPS will grow by 4.78% on average per year.
- The Revenue is expected to grow by 2.20% on average over the next years.
EPS Next Y7.76%
EPS Next 2Y5.34%
EPS Next 3Y4.78%
EPS Next 5YN/A
Revenue Next Year0%
Revenue Next 2Y1.49%
Revenue Next 3Y2.2%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 12.91, the valuation of ACO-X can be described as correct.
- ACO-X's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, ACO-X is valued rather cheaply.
- A Price/Forward Earnings ratio of 12.31 indicates a correct valuation of ACO-X.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ACO-X is on the same level as its industry peers.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. ACO-X is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.91 | ||
| Fwd PE | 12.31 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ACO-X is valued a bit cheaper than the industry average as 68.42% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, ACO-X is valued a bit cheaper than 63.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.16 | ||
| EV/EBITDA | 8.48 |
4.3 Compensation for Growth
- ACO-X's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.66
PEG (5Y)2.11
EPS Next 2Y5.34%
EPS Next 3Y4.78%
5. Dividend
5.1 Amount
- ACO-X has a Yearly Dividend Yield of 3.58%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 5.19, ACO-X's dividend is way lower than its industry peers. On top of this 94.74% of the companies listed in the same industry pay a better dividend than ACO-X!
- ACO-X's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
5.2 History
- The dividend of ACO-X has a limited annual growth rate of 3.93%.
- ACO-X has paid a dividend for at least 10 years, which is a reliable track record.
- ACO-X has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.93%
Div Incr Years31
Div Non Decr Years34
5.3 Sustainability
- ACO-X pays out 52.20% of its income as dividend. This is a bit on the high side, but may be sustainable.
- ACO-X's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP52.2%
EPS Next 2Y5.34%
EPS Next 3Y4.78%
ATCO LTD -CLASS I / ACO-X.CA FAQ
What is the ChartMill fundamental rating of ATCO LTD -CLASS I (ACO-X.CA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to ACO-X.CA.
What is the valuation status of ATCO LTD -CLASS I (ACO-X.CA) stock?
ChartMill assigns a valuation rating of 5 / 10 to ATCO LTD -CLASS I (ACO-X.CA). This can be considered as Fairly Valued.
What is the profitability of ACO-X stock?
ATCO LTD -CLASS I (ACO-X.CA) has a profitability rating of 4 / 10.
Can you provide the financial health for ACO-X stock?
The financial health rating of ATCO LTD -CLASS I (ACO-X.CA) is 5 / 10.
What is the expected EPS growth for ATCO LTD -CLASS I (ACO-X.CA) stock?
The Earnings per Share (EPS) of ATCO LTD -CLASS I (ACO-X.CA) is expected to grow by 7.76% in the next year.